Sandfire Resources (SFR)

CIMB cut Sandfire Resources from “hold" to “reduce".
Sandfire
released its December quarterly, which delivered on a number of key operational metrics but reported higher costs than CIMB was expecting.

Financial year 2014 copper production guidance looks on track for 65kt to 75kt copper but lower gold production and year to date performance is putting cost guidance of $US1.05 to US$1.15/lb at risk, CIMB said.

“Our updated outlook forecasts costs above this range at $US1.23/lb and results in a 5 per cent reduction in our NPV-based target price, from $6.10 to $5.80," CIMB said.